/IRBIS, February 4, 2010/ - Net capital inflows to developing countries fell to $ 780 billion in 2008, stated in Posted on February 3 Report of the World Bank "Global Development Finance 2010: The external debt of developing countries.

As indicated, the peak inflow of capital was made $ 1,222 billion in 2007.

It is particularly difficult due to the drop in private capital inflows, which fell by nearly 40 percent. This is true for all developing regions, with emerging market economies in Europe and Central Asia, which experienced a sharp decline, - stated in the message.

As indicated, the official creditors intervene to offset the decline in private capital flows, increasing its support to low-and middle-income countries. The net inflow of medium-and long-term financing from official creditors, including grants, increased by 54% in 2008 to $ 114 billion, almost 75% of these funds come in the form of grants.

Foreign direct investment grew at a moderate pace in 2008 to $ 594 billion, but they remain highly concentrated: in the top ten recipient countries (70% of FDI inflows), while in China - about one-quarter of the total.

In 2008, recorded an increase in confessional financing, including $ 6.7 billion from the International Development Association (IDA), has helped to support low- income countries, limited or no access to market-based financing mechanisms. Government grants (excluding technical cooperation grants) from bilateral and multilateral sources increased by 13%.

External debt indicators have improved. Since 2000, growth in developing countries outpaced the accumulation of new external liabilities. Ratio of external debt and export earnings of developing countries registered at the level of 57.8% in 2008, compared to 122.2% in 2000. The ratio of debt to gross national income had fallen to 22.1%, compared with 37.2% at the beginning of the decade. The ratio of debt service to export ratio stood at 9.5% in 2008, or half the 2000 level.

[2010-02-04]